Running head: PROBLEM SOLUTION: KUIPER LEDA
Problem Solution: Kuiper Leda
University of Phoenix
Problem Solution: Kuiper Leda
Kuiper Leda Incorporated (KL) is an electronic components manufacturer based in The Republic of Novamia. The company specializes in the production of Electronic Control Units (ECU) as well as Radio Frequency Identification Device (RFID Tags) for the automobile industry. Currently, they are a relatively small company that focuses on the quality of their product and delivery responsiveness. KL is looking to better control their inventory and expand their customer base. Midland Motors, a large and well-known original equipment manufacturer, has given KL an opportunity to achieve these goals. Midland has chosen KL to be the primary supplier for all of their ECU's and RFID Tags. Midland Motors has signed a year-long contract with KL for 250,000 ECU's and 35,000 RFID Tags to be evenly distributed in the upcoming year. Since Midland Motor's order exceeds KL's daily capacity, KL must now reorganize their structure to increase capacity. They must also consider and/or decide whether it's better to outsource the devices or some of its components.
Situation Analysis
Issue and Opportunity Identification
Midland Motors is a large company that has a reputation of keeping close and long-lasting relationships with their vendors. For KL it would be an unwise decision to turn their order down. After accepting Midland's order, KL is first faced with the decision to manufacture everything in house or to outsource in order to meet the demand of their new client. One huge issue is the lack of a structured process. With an order this important, KL needs to develop a system that will allow them to take orders from othe ...